Time to Shine? Evaluating the Economic Feasibility of Energy Storage Retrofits

Abstract

The threat of climate change looming ever closer has spurred the public and private sectors into action. In many states, legislators have implemented that mandate solar carve outs in order to accelerate the transition to a cleaner energy mix. The private sector has recognized this as an opportunity to make a profit while generating goodwill. However, renewable energy investments often call for complex project financing structures to maximize the tax benefits that subsidize these investments. This report leverages the author’s experience in the solar C&I space to envision a hypothetical scenario where a generic C&I Developer (“the Developer”) is evaluating battery storage as a meaningful add-on to their existing and future portfolio. Using a proprietary model developed for the report as well as analyzing current market activity, the report provides strategic recommendations for the Developer on both sell-side and buyside.